The Palestinian legal system has undergone a significant digital transformation over the last decade. As the Palestinian economy becomes increasingly integrated with regional and global markets, the need for a reliable, legally binding framework for digital commerce becomes a priority. The cornerstone of this transformation is the Decree-Law No. 15 of 2017 on Electronic Transactions, which officially brought Palestine into the digital age of legal recognition.
The law was designed to harmonize Palestinian legislation with international standards, specifically the UNCITRAL Model Laws. It aims to facilitate electronic transactions, provide legal protection for consumers and businesses, and reduce the bureaucratic hurdles traditionally associated with “wet-ink” signatures in the Palestinian territories. Despite the complexities of the political environment and the jurisdictional differences between the West Bank and Gaza, Decree-Law No. 15 serves as the unified primary reference for e-signature legality.
Legal Framework
A. Decree-Law No. 15 of 2017
This Decree-Law is the comprehensive legislative framework for all electronic transactions in Palestine. It covers electronic signatures, electronic records, and electronic payment systems.
Key Definitions under the Law:
1. Electronic Signature: A set of letters, numbers, symbols, or sounds in electronic form, attached to or logically associated with an electronic record, used to identify the identity of the signatory and their approval of the content.
2. Reliable Electronic Signature: For a signature to be considered “reliable” (and thus carry the highest evidentiary weight), it must meet the requirements of Article 15:
- • It must be unique to the person using it.
- • It must be capable of identifying that person.
- • It must be created using means that the signatory can maintain under their exclusive control.
- • It must be linked to the record in a way that ensures any subsequent change to the record is detectable.
B. The Regulatory Body: MTIT
The Ministry of Telecommunications and Information Technology (MTIT) is the primary authority responsible for supervising and regulating electronic signature services. The MTIT oversees the licensing of “Certification Service Providers” (CSPs), which are the entities authorized to issue digital certificates that validate “Reliable” e-signatures.
C. Evidence and Admissibility
The law modifies the traditional rules of evidence found in the Palestinian Law of Evidence No. 4 of 2001. Under Decree-Law No. 15, an electronic signature cannot be denied legal effect or enforceability solely because it is in electronic form. If it meets the criteria of a “Reliable Electronic Signature,” it is treated as the legal equivalent of a handwritten signature in all civil and commercial proceedings.
Documents That Can Be Signed Electronically
In Palestine, the majority of commercial and civil transactions can now be executed via electronic signature. These include:
1. Commercial Contracts: Purchase orders, service agreements, distribution contracts, and B2B invoices.
2. Consumer Transactions: Online retail agreements, digital subscriptions, and mobile application terms of service.
3. Corporate Governance: Internal company resolutions, minutes of board meetings (provided the company’s bylaws do not explicitly forbid it), and shareholder notices.
4. Employment Documentation: Non-disclosure agreements (NDAs), employment offers, and internal HR policies.
5. Banking and Fintech: Since the issuance of the Electronic Payment Systems Regulation by the Palestine Monetary Authority (PMA), banking instructions and electronic money transfers are increasingly governed by digital authorization.
6. Government Services (E-Government): Various applications for licenses and permits through the “Hukoomati” (My Government) portal.
Documents That Cannot Be Signed Electronically
Similar to other jurisdictions in the Levant, Palestinian law carves out specific exceptions where traditional formalities are required for “public order” and “security of title.” Per Article 3 of Decree-Law No. 15, the law does not apply to:
1. Transactions Related to Real Estate: Any contract for the sale, mortgage, or transfer of immovable property (land and buildings) must be registered in the Land Registry (Tabu). This process requires physical presence and traditional signatures before the Registrar.
2. Personal Status Documents: Marriage contracts, divorce certificates, and matters of alimony or custody fall under the jurisdiction of the Sharia Courts or Ecclesiastical Courts and require traditional written signatures and witnesses.
3. Wills and Endowments (Waqf): The creation of a will or the dedication of land as a Waqf requires specific solemnities that cannot currently be met through electronic means.
4. Documents Requiring Notary Public Authentication: Many Palestinian legal documents require the stamp of the Notary Public (Khatib al-Adl). While the MTIT is working on digital notary solutions, current practice still largely requires the signatory to appear in person to sign the official register.
5. Bonds and Negotiable Instruments: While the law mentions electronic checks, the physical Promissory Note (Sanad) remains the standard for summary enforcement in Palestinian courts; digital versions are not yet widely accepted for direct execution.
Notable Changes and Recent Developments
A. Transition from 2001 Evidence Law
The most notable change was the shift from the 2001 Law of Evidence, which was silent on digital matters, to the 2017 Decree-Law. Previously, lawyers had to rely on “expert witnesses” to prove the validity of an email or a digital log. Now, the law provides a clear presumption of validity for certified electronic signatures.
B. The “Hukoomati” Portal Launch
The Palestinian government launched the Hukoomati portal to centralize digital government services. This platform utilizes digital identity and electronic signatures to allow citizens to interact with ministries without physical travel—a crucial development given the geographical fragmentation (Area A, B, and C) and movement restrictions in the West Bank.
C. PMA Regulations for Fintech
The Palestine Monetary Authority (PMA) has been aggressive in pushing for digital signatures in the financial sector. The “Electronic Payment Systems Regulation” and the “Regulatory Sandbox” for fintech startups have created a secondary legal layer that reinforces the use of digital signatures for mobile wallets and electronic transfers.
D. Efforts Toward a Digital Notary
There have been ongoing discussions within the Ministry of Justice to digitize the Notary Public office. While not yet fully implemented, the legal groundwork exists in the 2017 law to eventually allow for “remote notarization” once the technical infrastructure and identity verification protocols are finalized.
Conclusion
Palestine possesses a modern and robust legal framework for electronic signatures through Decree-Law No. 15 of 2017. For international businesses and local entrepreneurs, this law provides the necessary certainty to conduct digital trade.
Disclaimer
The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, so Flowmono cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a legal practitioner in your area.
References
1. Palestinian Decree-Law No. 15 of 2017 on Electronic Transactions (Palestinian Official Gazette).
2. Palestinian Law of Evidence No. 4 of 2001 (Regarding traditional rules of proof).
3. Palestine Monetary Authority (PMA) Regulations: Instruction No. (1/2018) on Electronic Payment Systems.
4. UNCITRAL Model Law on Electronic Commerce: (As the foundational source for the Palestinian law).
